So you might have to pay 85k out of the proceeds towards paying down the loan.But if you had them all in individual loans, you'd pay off the loan for that house and that would be it.  70kWhere its really difficult is if you have a 5 year or 7 year term on the blanket loan.

Continuous participation.This is great if you are talking about an SMB with effectively connected Real Estate.Note rental activity is considered passive unless you meet the RE Pro threshold of 750 hours and more than 1/2 your time.This is the conundrum for passive real estate investors.If you have a full-time job or a large, time-consuming business it can be difficult or impossible to qualify.A huge loss from depreciation if you have one LP investment isn’t going to do anything for you.

With STRs, each partner will need to qualify for "material participation" though, and having a partner makes it a lot more difficult.

it's been difficult

Hi Cindy - It depends and difficult to provide detailed answer without evaluation of specific situation as SE tax hinges on whether your income is classified as active or passive.

@Saijal Sindwani I inherited a difficult tenant in April of 2023 and it just doesn’t improve.

I'm not sure if I'm budgeting too much for expenses or if that's just how the market is in my area because it is very difficult to find anything that cash flows positive.

The other "economical" areas are going to be more management heavy (think cheaper houses that are expensive in the long run) and the A/A+ neighborhoods will be very difficult to get cash flow (think Elmwood Village or Hertel Ave duplexes that are $350-400K but gross $3600/mo on the top end). 

I assume you’re going to make accounting, tax prep and certainly financing much more difficult, time consuming and expensive with the trust.

Or if they want a high-interest rate, and your numbers will not work at that interest rate, or if they really want a crazy high price where it will be difficult to cash flow and refinance in the future.